ERICSSON (LM) TEL-SP ADR (ERIC) Fundamental Analysis & Valuation

NASDAQ:ERIC • US2948216088

Current stock price

11.06 USD
-0.21 (-1.86%)
At close:
11.12 USD
+0.06 (+0.54%)
After Hours:

This ERIC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERIC Profitability Analysis

1.1 Basic Checks

  • ERIC had positive earnings in the past year.
  • ERIC had a positive operating cash flow in the past year.
  • ERIC had positive earnings in 4 of the past 5 years.
  • In the past 5 years ERIC always reported a positive cash flow from operatings.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • ERIC has a better Return On Assets (8.67%) than 82.61% of its industry peers.
  • With an excellent Return On Equity value of 24.57%, ERIC belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • The Return On Invested Capital of ERIC (16.49%) is better than 86.96% of its industry peers.
  • ERIC had an Average Return On Invested Capital over the past 3 years of 11.82%. This is in line with the industry average of 10.45%.
  • The 3 year average ROIC (11.82%) for ERIC is below the current ROIC(16.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.67%
ROE 24.57%
ROIC 16.49%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ERIC Yearly ROA, ROE, ROICERIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • ERIC has a better Profit Margin (10.90%) than 76.09% of its industry peers.
  • ERIC's Profit Margin has improved in the last couple of years.
  • ERIC has a Operating Margin of 14.04%. This is amongst the best in the industry. ERIC outperforms 82.61% of its industry peers.
  • ERIC's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 48.05%, ERIC perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ERIC has grown nicely.
Industry RankSector Rank
OM 14.04%
PM (TTM) 10.9%
GM 48.05%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERIC Yearly Profit, Operating, Gross MarginsERIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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4

2. ERIC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERIC is creating value.
  • ERIC has about the same amout of shares outstanding than it did 1 year ago.
  • ERIC has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ERIC has an improved debt to assets ratio.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • The Debt to FCF ratio of ERIC is 1.22, which is an excellent value as it means it would take ERIC, only 1.22 years of fcf income to pay off all of its debts.
  • ERIC's Debt to FCF ratio of 1.22 is fine compared to the rest of the industry. ERIC outperforms 65.22% of its industry peers.
  • A Debt/Equity ratio of 0.27 indicates that ERIC is not too dependend on debt financing.
  • ERIC has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: ERIC underperforms 65.22% of its industry peers.
  • Although ERIC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.22
Altman-Z N/A
ROIC/WACC2.16
WACC7.63%
ERIC Yearly LT Debt VS Equity VS FCFERIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • A Current Ratio of 1.12 indicates that ERIC should not have too much problems paying its short term obligations.
  • ERIC has a worse Current ratio (1.12) than 84.78% of its industry peers.
  • A Quick Ratio of 0.93 indicates that ERIC may have some problems paying its short term obligations.
  • The Quick ratio of ERIC (0.93) is worse than 78.26% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 0.93
ERIC Yearly Current Assets VS Current LiabilitesERIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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3

3. ERIC Growth Analysis

3.1 Past

  • ERIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 320.74%, which is quite impressive.
  • Measured over the past years, ERIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
  • Looking at the last year, ERIC shows a decrease in Revenue. The Revenue has decreased by -7.45% in the last year.
  • ERIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
EPS 1Y (TTM)320.74%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%4.51%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-10.35%

3.2 Future

  • ERIC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.41% yearly.
  • ERIC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.16% yearly.
EPS Next Y-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-11.41%
Revenue Next Year-1.71%
Revenue Next 2Y0.04%
Revenue Next 3Y0.91%
Revenue Next 5Y-0.16%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ERIC Yearly Revenue VS EstimatesERIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERIC Yearly EPS VS EstimatesERIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. ERIC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.95, which indicates a very decent valuation of ERIC.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 93.48% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ERIC to the average of the S&P500 Index (27.35), we can say ERIC is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 13.56, ERIC is valued correctly.
  • ERIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERIC is cheaper than 91.30% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ERIC to the average of the S&P500 Index (22.23), we can say ERIC is valued slightly cheaper.
Industry RankSector Rank
PE 10.95
Fwd PE 13.56
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ERIC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERIC is cheaper than 93.48% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERIC is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.55
EV/EBITDA 7.7
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • ERIC has an outstanding profitability rating, which may justify a higher PE ratio.
  • ERIC's earnings are expected to decrease with -4.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%

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7

5. ERIC Dividend Analysis

5.1 Amount

  • ERIC has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
  • ERIC's Dividend Yield is rather good when compared to the industry average which is at 1.89. ERIC pays more dividend than 86.96% of the companies in the same industry.
  • ERIC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.84%

5.2 History

  • The dividend of ERIC is nicely growing with an annual growth rate of 13.68%!
  • ERIC has paid a dividend for at least 10 years, which is a reliable track record.
  • As ERIC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.68%
Div Incr Years6
Div Non Decr Years6
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • ERIC pays out 37.93% of its income as dividend. This is a sustainable payout ratio.
DP37.93%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
ERIC Yearly Income VS Free CF VS DividendERIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

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ERIC Fundamentals: All Metrics, Ratios and Statistics

ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (4/27/2026, 8:00:02 PM)

After market: 11.12 +0.06 (+0.54%)

11.06

-0.21 (-1.86%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)04-17
Earnings (Next)07-14
Inst Owners58.35%
Inst Owner Change-0.05%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap36.87B
Revenue(TTM)230.99B
Net Income(TTM)25.17B
Analysts56.55
Price Target10.72 (-3.07%)
Short Float %1.93%
Short Ratio6.4
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend0.31
Dividend Growth(5Y)13.68%
DP37.93%
Div Incr Years6
Div Non Decr Years6
Ex-Date04-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.05%
Min EPS beat(2)20.34%
Max EPS beat(2)29.76%
EPS beat(4)4
Avg EPS beat(4)37.08%
Min EPS beat(4)20.34%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-47.67%
EPS beat(12)10
Avg EPS beat(12)-11.33%
EPS beat(16)11
Avg EPS beat(16)-6.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-4.28%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.1%
PT rev (1m)5.16%
PT rev (3m)11.01%
EPS NQ rev (1m)8.73%
EPS NQ rev (3m)9.82%
EPS NY rev (1m)0.84%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.33%
Valuation
Industry RankSector Rank
PE 10.95
Fwd PE 13.56
P/S 1.47
P/FCF 10.55
P/OCF 9.46
P/B 3.32
P/tB 7.65
EV/EBITDA 7.7
EPS(TTM)1.01
EY9.13%
EPS(NY)0.82
Fwd EY7.37%
FCF(TTM)1.05
FCFY9.47%
OCF(TTM)1.17
OCFY10.57%
SpS7.5
BVpS3.33
TBVpS1.45
PEG (NY)N/A
PEG (5Y)1.14
Graham Number8.69461 (-21.39%)
Profitability
Industry RankSector Rank
ROA 8.67%
ROE 24.57%
ROCE 20.87%
ROIC 16.49%
ROICexc 27.77%
ROICexgc 74.62%
OM 14.04%
PM (TTM) 10.9%
GM 48.05%
FCFM 13.97%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ROICexc(3y)17.47%
ROICexc(5y)18.15%
ROICexgc(3y)43.71%
ROICexgc(5y)45.38%
ROCE(3y)14.96%
ROCE(5y)15.6%
ROICexgc growth 3Y-6.32%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y14.91%
ROICexc growth 5Y1.28%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.22
Debt/EBITDA 0.68
Cap/Depr 45.8%
Cap/Sales 1.61%
Interest Coverage 16.47
Cash Conversion 88.74%
Profit Quality 128.22%
Current Ratio 1.12
Quick Ratio 0.93
Altman-Z N/A
F-Score7
WACC7.63%
ROIC/WACC2.16
Cap/Depr(3y)41.44%
Cap/Depr(5y)47.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)320.74%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%4.51%
EPS Next Y-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-11.41%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-10.35%
Revenue Next Year-1.71%
Revenue Next 2Y0.04%
Revenue Next 3Y0.91%
Revenue Next 5Y-0.16%
EBIT growth 1Y21.17%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year7.58%
EBIT Next 3Y5.03%
EBIT Next 5Y1.89%
FCF growth 1Y142.33%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y99.14%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON (LM) TEL-SP ADR / ERIC Fundamental Analysis FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


Can you provide the profitability details for ERICSSON (LM) TEL-SP ADR?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the valuation of ERICSSON (LM) TEL-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 10.95 and the Price/Book (PB) ratio is 3.32.


How sustainable is the dividend of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 37.93%.